HSBC set a new record low rate today but a top mortgage adviser doesn’t expect more rate drops to follow.

To celebrate 30 years in New Zealand, HSBC is offering new and existing premier customers a 3.87% p.a home loan rate on an 18-month fixed term.

The bank announced this morning that this rate was the only current home loan offer available in New Zealand under 4% p.a, and is lower than the 3.95% p.a. home loan rate it offered for the same tenor in February 2016, which at the time was the lowest residential mortgage rate in New Zealand for over 50 years.

HSBC NZ Head of Retail Banking and Wealth Management Glen Tonks said the low fixed-term home loan rate demonstrated the bank’s commitment to “consistently offering our customers very competitive and often market-leading home loan rates”.

This rate is being offered for a limited time to current and new HSBC Premier customers who borrow at least an additional $100,000. To qualify, these customers must provide an owner-occupied property as all, or part, of the security.

This interest rate is current as of 29 September 2017, and is subject to change or withdrawal without notice, HSBC’s term and conditions state. Minimum deposit and equity criteria also apply.

HSBC said an individual could qualify to become an HSBC Premier customer either via a minimum combined home loan of $500,000 or $100,000 in savings and investments with the bank. HSBC Premier is a global personal banking proposition that operates in more than 30 countries.

In 1987, HSBC was the first overseas bank to be granted a banking licence in New Zealand.